Complaints and Procedures

Procedure for filing Complaints

Section 46 of the Retirement Benefits Act provides that “Any member of a scheme who is dissatisfied with the decision of the manager, custodian or trustees of a scheme may request, in writing, that such decision be reviewed by the Chief Executive Officer with a view to ensuring that such decision is made in accordance with the provisions of the relevant scheme rules or the Act under which the scheme is established. A copy of every request under this section shall be served on the manager, trustees or custodian of the scheme”. In addition to members of schemes, trustees, sponsors and service providers are free to ask the Authority to decide on complaints and disputes relating to management of retirement benefits schemes.

On this premise, the Authority with the power to make decisions on matters relating to retirement benefits, investigates and decides complaints and disputes relating to the way retirement benefits schemes are run. The Authority’s decision is final and binding on all the parties to the complaint and can be enforced in a court of law. Decisions of the Authority can only be challenged by appealing to the Retirement Benefits Appeal Tribunal set up under Section 48 of the Retirement Benefits Act.

A complaint can be defined as an oral or written expression of dissatisfaction or concern about issues or about actions or lack of actions. In this context complaints will be with regard to matters relating to the Retirement Benefits Industry.

Complaints must be that the party complained against has behaved in a way which constitutes unsafe and unsound practice the conduct which has caused injustice. Disputes can be disagreements concerning fact or law.

The Retirement Benefits Authority cannot deal with or investigate:

Complaints about the Civil Service Pension Scheme (government pension) or other government benefits. Problems with government pension should be taken up with the office of the Secretary/Director of Pensions.
Complaints about the way that financial services business (outside fund management and custody) is carried out by organisations and people regulated by the Central Bank of Kenya, Insurance Regulatory Authority, Capital Markets Authority or bodies approved by them. Generally this means that the Authority will not deal with the way in which financial products are structured, sold and marketed.
Complaints or disputes already subject to court proceedings dealing with matters outside retirement benefits (an employment tribunal counts as a court).
Matters subject to regulation by the Industrial Court. There are certain matters regulated by the Employment Act which may form part of terminal benefits (but are not retirement benefits) that the Retirement Benefits Authority cannot make findings about.

The Process

The Retirement Benefits Authority expects that in the first instance a complaint should be taken up in writing with the party thought to be at fault. Retirement benefits schemes are required by law to have a formal internal dispute resolution mechanism. Where the requirement applies, if the party complained against has not been given the opportunity to issue their decision on a matter, then the Authority cannot deal with the matter.

The Retirement Benefits Authority further expects that individuals who want to complain to first seek dialogue with the party complained against. It has been noted that in many cases complaints arise due to lack of communication between the parties or misinterpretation of the rules of a scheme.

The Retirement Benefits Authority will deal with complaints received in writing since it is important to keep a record of what is said. The Authority requires that complaints are lodged formally on an official complaints form prepared for this purpose. Notes on how to file the complaint are also given on the complaints form. The form to be used by members is available at the Authority’s office and website at no cost. Trustees, sponsors and service providers wishing to complain are required to do so in writing.
The Retirement Benefits Authority’s staff will acknowledge your complaint within fourteen days and where applicable ask for further information relating to your case. When the Authority’s staff have all the relevant papers, they will commence the complaints process and copy all correspondence to you. If the Authority cannot address your complaint, you will receive an explanation.

When the Retirement Benefits Authority receives a complaint that can be upheld then investigations begin. On average complaints take about one month to resolve. However the investigation process may sometimes take a while because some complaints may be complicated and everyone has to be given a chance to express their views. Those who file complaints are requested to be patient while the Authority investigates the complaints.